Closing is Approaching - What Are My Options as a Pre-Construction Buyer?

If you’ve purchased a pre-construction property and your closing date is just around the corner, you might be feeling the pressure—especially if your life or financial situations have changed, the market isn’t cooperating, or your original plans for the unit have shifted since you bought the property.

Here are the most common options available to you when your closing date is approaching:

1) Assignment Sale

An assignment means selling your contract to another buyer before your closing. While this strategy is common in other markets like Toronto, Calgary’s assignment market is virtually non-existent.

In fact, prior to 2021, pre-construction was not a thing in Calgary–developers would complete the building first, then sell units afterwards, so buyers took immediate possession, and assignments were virtually unheard of.

Making it even more challenging, developers don’t allow you to advertise an assignment publicly on MLS, Realtor.ca, or other platforms, which makes it nearly impossible to find a buyer. Realistically, if you want to assign your unit in Calgary today, you will need to offer a large discount—likely 15-20% below your purchase price—plus selling costs. For most sellers, this is not an attractive or viable option.

2) Giving the Unit Back

Many buyers wonder: Can I just give the unit back and walk away?

The short answer is: No. Developers never agree to simply take the unit back and return your deposit. While rare cases exist where mutual releases have been granted when a deposit was forfeited, they’re the exception, not the rule. When a developer agrees to a mutual release, they give up the legal right to sue you for damages later and most won’t do that.

3) Defaulting on the Purchase

Defaulting means failing to close on your contract at the date/time specified. In this case, the developer has the legal right to retain your deposit and resell the unit. If they sell it for less than your contract amount—including their legal, financing, and selling costs—they can sue you for the shortfall.

While Calgary hasn’t seen many cases of this play out yet, developers in other markets are suing buyers who have defaulted when it’s in their financial interest. This is not a risk-free way out, and should be treated as a last resort—get professional legal advice if you are considering this option.

4) Close and Immediately Sell

If you can come up with the funds to close, another option is to take possession and then list the property for sale right away.

To make this strategy work, consider getting a variable-rate or open mortgage, which will allow you to sell without large penalties. It’s also critical to opt out of any rental guarantee program before closing, so you can deliver vacant possession of the unit to the new buyer. A tenanted unit is much harder to sell and it will sell for less.

There are tax implications here as well, mainly that any profit will be considered as income and added onto your marginal tax rate. If you have a profit, this could mean tens of thousands in extra taxes. If you have a loss, you may not be able to write this off against other investments—get professional accounting advice if you are considering this option.

5) Close and Hold

This is the strategy I recommend for everyone that can financially manage it in order to maximize the return on your investment because you make money in real estate over the long-term.

By holding your property for at least a year, any profit you make from the sale should be treated as a capital gain rather than income, meaning you pay 50% less tax! On top of that, if you rent out the unit for at least a year, you should qualify for the GST rebate of up to $6,300—which is essentially free money back in your pocket.

Holding also gives the market time to stabilize. Immediately after closing, there’s often a flood of new listings as other buyers try to exit, which can temporarily suppress prices. By waiting out this initial supply shock, you give your property a chance to appreciate in value.

Most importantly, real estate is a long-term wealth-building tool. When you hold, you benefit from passive equity growth, mortgage paydown, cash flow, and the potential for strong long-term returns. It’s the strategy that is the most stable and tax-efficient option, and nearly always produces the highest returns.

Final Thoughts

Every situation is different—and the wrong decision can be costly. Understanding your options ahead of closing can help you make the best decision—whether that means weathering the short-term turbulence or adjusting course.

If your closing is coming up and you’re unsure what to do, don’t navigate this alone. I help clients across Canada make strategic choices about their pre-construction properties—especially in markets like Calgary.

Let’s chat if you need help and make your investment work for you.